An Introduction to Tax Appeals
Tax appeals are generally the process whereby a tax result is disputed. This can arise as to an income tax return, an employment tax dispute, an estate tax dispute or any other tax dispute. Generally, a tax appeal is filed in the tax court or in federal court (i.e. federal district court) or in a state court. In most instances, the decisions of tax tribunals and courts are published.
Tax appeals are generally based on the legal assertions that (i) there is no tax that was ever owed, whether on the grounds that the income is specifically excluded from taxation or whether the income was never received; and/or (ii) the tax amount computed by the Internal Revenue Service is not correct. In other words, while there may have been some taxable income, it is the amount of taxes computed by the IRS or state taxing authority that is wrongful. There are several areas of concern that taxpayers and those subjected to tax appeals must remain attentive to. First, there are keeps regarding the statute of limitations (the time period within which such tax appeals can be filed in court). Second, court rules that courts and government agencies have with respect to the processes to be followed in making a tax appeal may vary. Third, a taxpayer has various rights including the right to appeal a tax assessment; the right to counsel; the right to obtain a fair hearing , the right to an impartial adjudicator; the right to present evidence, call witnesses, and cross-examine witnesses; the right to obtain a summary of the record and factual findings, and the right to obtain all documents where the taxpayer is the party in the case and in possession of his or her records.
While there are tax appeals that may be taken on one’s own, many taxpayers may wish to seek legal diction with respect to such matters. In this regard, tax attorneys are available who can assist with such appeals, and may even assist may federal courts in hearing evidence in tax matters. I have personally appeared before the United States District Court for the Eastern District of New York in handling several matters including criminal matters and tax liability matters. Other areas where tax appeals may be concerned include an initial filing of a tax appeal before the Commissioner of Internal Revenue (this is done prior to initiating a tax appeal in court); meeting with revenue agents of the Internal Revenue Service to determine whether there are factual differences between the parties; and pursuing a Tax Court Appeal (this is done if a taxpayer disagrees with the IRS where the taxpayer has filed a petition with the Tax Court).
The Advantages of Choosing a Tax Appeal Attorney Near You
It’s important to work with a tax appeal attorney that understands the ins and outs of your local area. The advantage of pruning potential lawyers down to those near your own home or office is that you can reasonably expect them to have a more thorough understanding of the local laws and apply them accordingly to your property taxes. People can only be experts in so many things, and geographic boundaries can help you as a consumer. While attorney’s fees may vary from one region to the next, the fact that local attorneys tend to have less overhead in terms of hiring employees of multiple professionals in order to serve a larger area, this helps to reduce one’s expenses when working with a local attorney.
When you hire a local attorney, there’s also less of a chance that you’ll forget to contact them or have an attorney misdirect communications to or from an incorrect location. There’s no need to worry about where the office is located as you will likely have an easier time finding out where they are located, rather than having to play guessing games with some of the national chains out there that only have one or two offices located in an entire state.
In addition to this, local tax appeal attorneys will consider you as a potential customer that will return every year, which means they have incentive to listen to you and put you first on their priority list. National chains sometimes have the problem of allowing just anyone to handle clients based upon availability instead of experience, but with a local attorney, you’ll find that you would choose to hire them based upon their performance, so they will work hard to make sure you’re happy with their service.
How to Locate a Reputable Tax Appeal Attorney in Your City
When it comes to finding a reliable tax appeal attorney in your area, there are several strategies and resources you can use. One effective method is to tap into online directories, which allow you to search for attorneys by practice area and location. Websites such as Martindale-Hubbell, FindLaw, and Avvo provide detailed profiles of potential candidates, along with client reviews and ratings. Reading online reviews and testimonials can be beneficial in gauging a lawyer’s reputation and level of expertise.
Another valuable resource is referrals from other attorneys or legal professionals within your area. If you have a lawyer who represents you in another matter, ask them for recommendations. They may be able to refer you to someone specializing in tax appeals.
You can also contact your local or state bar association for a referral to a qualified tax appeal attorney. Many bar associations offer a client referral service that can connect you with lawyers in your vicinity who have the appropriate skills and knowledge to represent you.
It is critical to remember that choosing the right tax appeal attorney is a decision that requires careful consideration. The expertise of the attorney can have a significant impact on the outcome of your case. By using these resources and conducting thorough research, you can find a trustworthy and experienced tax appeal attorney near you who can help you navigate the complexities of the tax litigation process.
Essential Traits to Look For When Hiring a Tax Appeal Attorney
An experienced tax appeal attorney cannot be easily replaced by any other kind of legal professional. A tax appeal is an incredibly complicated matter, and a good attorney with experience navigating the legal system is going to have a significant advantage in understanding how to structure their argument and build a case that has a strong chance of success.
Some of the specific qualities you should look for in a tax appeal attorney include:
Experience
Because of the high stakes involved in a tax assessment appeal, you want to ensure you hire an attorney who has substantial experience in this practice area. Ask your attorney about their experience with tax appeals and their specific proven results. Your attorney should know how to prepare the appeal and what information you will need to submit.
Specialization
You are going to want to seek out an attorney who specializes in tax law and appeals. While other attorneys may have some relevant experience, one who specializes will undoubtedly have an edge in their knowledge and insight into the tax appeal process.
Success Rate
It is also critical for your tax appeal attorney to have a high rate of successful appeals. This is an indicator that the attorney is familiar with properly structuring appeals to get successful results.
Client Testimonials
Once you have narrowed down your search to only those tax appeal attorneys that have substantial experience, specialty and success, you should also be sure to check online reviews and testimonials to further evaluate the attorney. If they have strong testimonials, you can be fairly assured of their professionalism and level of service.
Crucial Questions to Pose to Your Tax Appeal Attorney
To ensure you’re comfortable with your choice, it’s important to ask all of the right questions upfront. When considering whether to hire a tax attorney, explore the following questions:
How long have you been practicing?
Experience matters. For the best results, you’ll want an attorney who’s been working in the field for at least five years. Ask what percentage of that experience centers around tax appeals and property valuation disputes.
Can you tell me about similar cases you’ve handled recently?
The attorney you hire should be able to discuss previous outcomes they’ve achieved in similar cases within recent years.
Are you C.P.A. certified?
While it’s not fully necessary, hiring a C.P.A. certified attorney often makes the difference in a more successful outcome. In reviewing your financials , an attorney can apply their specialized skills to help you obtain the greatest possible deduction and regularly review and challenge assessments.
How do you approach clients when they are being audited by their local government?
Every client should expect a level of communication from their attorney during tax season. Property appraisers generally visit homes every 3 to 5 years. A home’s condition is also assessed once per cycle. This means that an appraiser could drive up to a recently paved driveway or freshly painted home and immediately assume it’s been renovated. At this point, homeowners and business owners alike should contact their attorneys. Knowing a local attorney who’s familiar with their case can save them thousands of dollars.
How do you structure your fees?
When will I have to pay your attorney fees? Are there any additional costs I should be aware of? You want to be clear on how you will be charged for your legal services as well as what, in addition to your attorney fees, you will be billed for.
How many clients do you represent at any given time?
Lawyer time management affects outcome. Typically, a committed attorney will only take a small number of new clients each month. Any more than that and they risk being unable to commit the time and resources necessary to their cases.
What to Anticipate During the Tax Appeal Process
The tax appeal process can vary depending on the specific circumstances of the case and the jurisdiction. However, there are a few common steps that clients can generally expect.
First, it’s important to be aware that clients have a limited time frame in which they can file a property tax appeal, usually within a matter of weeks after they receive a property tax assessment. It’s essential to contact the attorney as soon as possible to discuss your case and determine if filing an appeal is a good option.
Once an attorney is contacted, a consultation will be scheduled to assess the client’s specific property and situation. During the consultation, the attorney will guide the client through the appeal process. For instance, when challenging a residential property assessment, the attorney will review comparable properties to determine whether the value assigned is fair and if there are supporting reasons to file the appeal.
After the case is reviewed and evidence gathered, the attorney will file the appeal with the appropriate authorities, which usually includes providing a complaint, any required forms such as waivers, and the payment for filing fees. In some cases, there will be strict deadlines in which the information must be submitted. The local Board of Assessment will then schedule a hearing to review the case.
Hearings are typically informal but should be taken seriously. Clients may have an opportunity to appear before the judge or Board of Equalization, in some cases, they may not have to appear at all. The purpose is essentially for both parties to present evidence and argue their case as to the value and assessment of the property. After the hearing has taken place and all the evidence has been reviewed from both sides, the judge or Board will render a decision on the appeal.
Once a decision is rendered, property owners may accept the assessment as-is or pursue other remedies, including going to court if they do not agree with the written determination. Under certain circumstances, you may also be able to appeal the decision but are advised to speak to the property tax appeal lawyer before pursuing this option. It is worthwhile to mention that, unfortunately, not all property tax appeals are successful, but there can be circumstances and instances where it can be beneficial to reappear before the Board of Equalization.
Conclusion: Making an Informed Choice
Until I started doing this work, I was unaware of how many types of attorney’s practice tax law. Today it is more complex than ever. It became obvious when I fell into the area of state tax practice that identifying who does what became complicated . I am sure others have found this to be true also. Be sure to do adequate research and consult multiple attorneys before making a decision to hire one. Look at every factor discussed above to make your decision on which tax appeal attorney you will hire.